Bitcoin is one trending Cryptocurrency that has grabbed the attention of people over the past few years. There is no doubt that its inflation level has halved to a great extent. This eventually has contributed to the price increase of the Bitcoin. Many factors together have contributed to making an impressive bitcoin’s Bull Run during the other half of 2020.
All about the price hike:
The price value started increasing in March when Bitcoin fell to the lowest point in that year. It has even touch lower than $4000. The currency has been bouncing back and fighting its way for more than $1000 value point which shall make another high and hit the price which no one must have seen post-2018 epic Bull Run.
There is not just one reason by multitudes that contributes to the hike of Bitcoin price. There are so many large institutions such as Micro-strategy which has given platforms for companies like the grayscale to manage Bitcoin for their self-clients. Besides PayPal has also started letting people make the purchase and sale of Bitcoin which adds up to another reason. Be it the institutional investors or the huge endorsements that Bitcoin halves, there are so many reasons which can be an eye-opener for you on why Bitcoin price is rising. Have a look at some of them:
Reason 1: The MicroStrategy Effect
If you have a look at the numbers from August till September, you shall understand that there are many international giants and business intelligence firm like MicroStrategy who made an investment of more than $425 in Bitcoin. Following this investment, companies like Square further made $50 million of investment which is nearly 1% of the whole company’s assets in the Bitcoin by October 2020. Due to such investment that square and MicroStrategy had made, there are notable profits of nearly 53% and 46% for the respective company’s Bitcoin noted. The value is now $76 million and even $ 620 million.
Such a big name surely has been the most outspoken one for Bitcoin. Besides, the CEO of MicroStrategy Micheal Saylor also has been participating to publicly promote Bitcoin. It was his company the first to announce the investment intentions while deciding it as digital gold.
Reason 2: New money-The Demand Case
Even if there are so many known financial institutions who are using Bitcoin but they are not being outright and embracing it. As per the report of JPMorgan, it has been focusing that the purchase of Bitcoin is three times more than the amount which was made in the earlier quarter. The world is in a pandemic crisis where the economy is getting weakened in almost every continent that includes Antarctica too. Besides, central banks are only printing the fiat currency at a pace within their limits. However, governments are spending euros and dollars and even borrowing in the best possible manner to bring calmness to the economy. This is another inflationary measure that adds to the stock up price of the Bitcoin.
Reason 3: Political Upfront, bullish signs, and Closest rivals:
Even some reports were found which clearly stated that along with the closest rival call ether, Bitcoin is making quite high. However, if you have a look at the 2017 records of ether prices, you shall understand that it was in the rearview post the Bitcoin had made highs. If we consider it from the early of 2020, you shall see that 200,000 bitcoin were already sold by the investors in East Asia for satiating the growing appetites of some areas in North America. Despite three vaccines of coronavirus has shown great improvement, there is still a physic threat on the workplaces which cannot be ignored. Besides if we have a look at the political upfront, In-country like The United States, there is so much uncertainty on who shall be handling the federal government because of which dispute has begun and which eventually has even resulted in Bitcoin price to pace up so fast.
Reason 4: Bottled-up Bitcoin -The Supply case
It is not just the demand side but the explanation of the supply case shall also give you an answer to the question. Firstly, you need to understand whether there are enough bitcoins for slaking the thirst of all the purchasers who are emerging in the market and are quite worried about the imbalance of the economy. Quite some time back, it was supplied which was the primary topic amongst the people who focused more on crypto. Bitcoin was during that time going through halving which rewards were given for mining a black which was cut in two. This automatically results in a price surge since 900 fewer new leads could automatically cause the price surge. Since halving’s quite popular events that are designed in the coding of the Bitcoin from the start, the market had an idea about it.
Other than this, there is also a role of the site of lion’s share in China for the hash power of the Bitcoin. Although the crackdown by the government is still taking the roll on the few crypto exchanges, the crackdown may not be about halting the crypto but to stamp the money laundering. Other than this, PayPal has also made it super user for the crypto users to make the payment with those merchants who accept the same transaction.
From the past few months, if you have a closer look, you shall understand that the price of Bitcoin has increased quite a lot. There are so many reasons contributing to such a surge. Be it the figures of high profile or the companies that support Bitcoin strongly, there is no doubt that Bitcoin has managed to grab the attention of many. Currently, the Bitcoin price is more than $19000 which has broken the record for the first time in the last three years. Besides, the latest price of Bitcoin shows a 66% rise in the price in the last three months. There is certainly no doubt that Bitcoin shall soon head to $20000.